British law firm Campbell Hooper has warned that in September, the remaining provisions of the Gambling Act 2005 could classify some online virtual worlds and games as illegal. "In September the remaining provisions of the Gambling Act 2005 will finally come into force. Its main purpose is to update the law on gambling, which in some cases is over 50 years old and is therefore inadequate for the modern world," Campbell Hooper's Alex Chapman told GamesIndustry.biz.
The law is meant to regulate online gambling, which will soon be legal in the UK, but online games that offer prizes could also be covered.
"This is because the new law creates a new single definition for 'Gambling', which includes playing a game of chance for a prize, and makes it a criminal offence to provide facilities for gambling without having and complying with an operators licence," explained Chapman.
The act defines remote gambling as "gambling in which persons participate by the use of remote communication" through "the internet, telephone, television, radio, or any other kind of electronic or other technology for facilitating communication." Gambling is playing a game of chance "that involves both an element of chance and an element of skill, a game that involves an element of chance that can be eliminated by superlative skill, and a game that is presented as involving an element of chance, but does not include a sport."
The person plays a game of chance "whether or not a computer generates images or data taken to represent the actions of other participants in the game [...] whether or not he risks losing anything at the game" and the prizes may be "money or money's worth, and includes both a prize provided by a person organising gaming and winnings of money staked."
"This arguably puts the marketplaces in MMOGs such as Station Exchange in Everquest in the firing line, and makes the products sold through them "prizes" - since they have a monetary worth," said Chapman.
This does not mean online games with prizes must shut down, though. Chapman recommends obtaining an operators' licence from the Gambling Commission.
"This is not a simple task, but it is also not overtly complex," he said. "The key is to satisfy the Commission that you have in place an operation that satisfies the requirements and key objectives of the new law."
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